Life Insurance...is this normal??

[AllyandJack]

My husband and I have decided to take out $260,000 policies on each other pay off our mortgage in the event that one of us dies. We both work and are individually financially secure, however, we would really prefer that the house be paid off so we don't have to think about a mortgage if we chose to take some unpaid time off to grieve. I know....really morbid, but necessary.

Anyway, we decide to go with a really reputable company - think SNOOPY. Anyway, the guy comes to the house, takes all our information. Ages: 26 and 34. Smoke: No. Health Problems: No. Entire work histories because it's a big policy. Every place we've ever lived. Blah, blah. We give him checks for the first premiums, which they cash. We expect to get our policies in the mail. Nope. Instead we get another call from the guy asking us our "net worth." OK, if I had a "net worth" I would need that life insurance. I'm 26. I just got out of school. Sure, I own a home, but I just made my first mortgage payment! Sheesh! He asked us our incomes and then they asked why my premium was paid with my husband's check. We're on each other's bank accounts, but we maintain both accounts. Then they asked about my name - why I kept my name. Am I ever going to use his name? Finally we answer all his questions. Last night I get another call! this time it was from customer care. More questions. Do I drink: 2-3 times a month. How many drinks? What kind of alcohol. How much do I make? What is the nature of my job?

Is this normal?? I realize it's a big policy, but it's the exact amount of my mortgage. If I was going to run a scam, I would have asked for more! Any other experience with this kind of stuff??

 

[luvwinnie]

especially if you have already paid...if they took your check your policy should be in effect and how is it their BUSINESS if you didn't take DH's name???

 

[EROS]

I hope that you both bought TERM life, not WHOLE life. Term insurance at your age should be quite cheap and covers you only in the event of your death ........without any savings/investment component. There are a host of services on the Internet which could give you a competitive comparison; did you get quotes from different companies???? Most term insurance can be handled by computer/mail without any salesmen.

Good Luck,

 

[Toby'sFriend]

hmmmm - I carry quite a bit more insurance than that and I'm older. I had to have a blood test and fill out a questionnaire the last time I applied for insurance, but nothing to the extent you describe.

 

[Goofyposter]

hmmmm - I carry quite a bit more insurance than that and I'm older. I had to have a blood test and fill out a questionnaire the last time I applied for insurance, but nothing to the extent you describe.

.....AllyandJack ....I'm in the same position as Toby's Friend....I've never dealt with Met...so I can't comment on they're service. Also, I've always bot whole life so that I have equity in my policies. I hope it all works out for you!

 

[Doctor P]

I would not overreact. Most, if not all, of the questions they have asked would appear to be reasonable, IMHO, to try to discern that the applications are on the up and up and that there is no fraud or red flags involved. Look at it this way: if you were going to make a $500,000 bet with someone that they aren't going to die in the next X years, wouldn't you ask a few of these questions, too. It is unsettling to be asked these probing questions when everything is on the up and up, but with all the insurance losses and fraud that has occurred in recent years, I think we need to be patient with some of this (as intrusive as I too might find it). Keep in mind that even though the salesperson took your money, the company still needs to make the decision to actually underwrite the policies.

 

[DVCajun]

Originally posted by Doctor P
...... Most, if not all, of the questions they have asked would appear to be reasonable, ....

Asking why she chose to keep her name isn't reasonable, IMO.

Geez.

I wonder, though, if Eros has a point. We have term life and we didn't have to go through what you're going through. Our policy limits are similar too. Whole life is a ripoff. Take the difference in term and whole premiums and put it in a savings account or invest them-- that's all they're doing. They're NOT doing you a favor, that's for sure.

 

[Judy from Boise]

We have quite a bit more insurnace than that, and i don't think the questions were as detailed. However i do think you are at their mercy and should most likely grit your teeth and answer.

 

[Lynn CC]

I wouldn't have answered any of those questions over the phone. I would have told them to send a rep to my house if they had any further questions. If they didn't have your address, then it was just a nosy- body calling you.

We have large policies and had to answer questions on the application and have a physical with blood tests, but we never were questioned by anyone other than the agent who issued the policy at our home...and that was with "Snoopy".

 

[A kid at heart]

think SNOOPY.

when I read that I was thinking of snoopy on this board...LOL

 

[adamak]

That is kinda strange. Did you hear anything new from them yet?

I've a bigger life insurance than yours, with State Farm. I went to their office, sign something, then the person come over for a blood sample. That's all. They did ask a bunch of questions before I sign my policy. Like do I drink, do I smoke, ....blah blah.

Nobody ask me why I don't take my husband's name. Or what kind of alcohol I drink. That's very suspicious. You may want to call the company's headquarters, and check the agent out. Esp you have already paid for the premium.

 

[AllyandJack]

Thank you for all of the helpful responses! We did get term life since we're young. We got a 10 year term for the amount of our mortgage. We figured that in 10 years the mortgage would be paid down and we can just transfer some into whole life. The rep did come to the house and then the phone calls started. First, they wanted detailed income information that wasn't on the original form we filled out with a rep. Then, they called and asked pretty much the exact same questions the rep had asked because the underwriter wanted them to verify the information. I haven't heard anything since, but if I don't get a policy in the mail by Friday, I'm calling them up, demanding my money be returned and I'll go with another company. We're young, healthy people who own our own home and make a good living. Not that that should matter since, even if we were broke, we still deserve to be financially stable during our grieving period in the event a tragedy happens.

I just love the part about my husband's name. This twit had the nerve to question that. So, I told her the truth. I told her all of my degrees are in my name and I think it would hurt me professionally to all of a sudden be known by a different name. There was absolute silence on the other end of the phone. I mean, what did she expect me to say?? I didn't take his name because it's a big scam and we're not really married?? I should have said that just for fun, but I was tired and wasn't in the mood for jokes. They even wanted to know which checking account the monthly premium would be sent out of! Apparently, my policy has to be paid by checks in my name and his policy has to be paid out of checks in his name. Even though both names are on both accounts. The whole thing is just silly and, if I don't hear something soon, I'm getting my money back and going with someone else.

We should start some kind of consumer warning thread and post these kinds of experiences so people will avoid these companies!

 

[December99]

I'm surprise they didn't ask for a marriage certificate!